Saturday, 14 January 2017

Stocks rise amid sign investors bracing for downturn

Stocks mostly rose on Friday.

The S&P 500 rose 0.2 percent, the STOXX Europe 600 rose 1.0 percent and the Nikkei 225 rose 0.8 percent.

However, the Shanghai Composite Index fell 0.2 percent after China reported that its exports fell in December from a year earlier. The Shenzhen index fell a hefty 1.6 percent.

Oil also fell. West Texas Intermediate crude fell 1.2 percent while Brent fell 1.0 percent.

Despite the gain on Friday, US stocks finished the week down 0.1 percent.

A MarketWatch report sees worrying signs for the market ahead.

It cites Bespoke Investing Group in saying that the most heavily shorted stocks have not taken part in the stock market rally so far. According to Bespoke, this goes against the usual trend in rising markets, and suggests a cause for concern for the broader market.

Another MarketWatch report notes that demand for one-month call options tied to the CBOE Volatility Index has spiked in the past week, a sign that some are bracing for a sharp downturn following the inauguration of President-elect Donald Trump.

No comments:

Post a Comment